Swedish renewable energy company Eneo Solutions AB announced it was awarded Sweden’s first solar PPA for a rooftop project in a tender held by the Municipality of Järfalla.
The company said that this is Sweden’s first public PPA solar energy project. The municipality had asked the market for the lowest power price from 10 rooftop PV systems planned for its own facilities. A total of 745 kW of PV will be mounted on the roofs of seven schools and three residential homes, according to Eneo.
“Even though the Swedish power price is quite low, it possible to reach an attractive PPA”, Eneo’s business manager Hans Viken told pv magazine. According to Viken, however, the economics of the municipality’s solar initiative was not the primary driver, but nevertheless an important aspect. The municipality had compared the expected LCOE of PV with those of grid power, and, even if it lowered the expectations of the value of Energy Certificate (ECs) and Guarantee of Origin (GOs), the PV LCOE price was significantly lower.
The size of each plant is optimized to match each facility’s energy consumption and, as long as the power produced is used behind the meter, PPA prices can reach grid parity, Viken explained.
“The winning bid,” Viken specified, “was at SEK 1,1 ($0.13)/kWh under the 20-year PPA. However, the municipality expects the actual PPA cost to be 0,9 SEK/kWh, due to the value of ECs and GOs, which they estimate to 0,2 SEK/kWh seen over time. The PPA also contains the 30% deduction of the installation cost supported by Sweden’s solar rebate scheme.”
The Swedish legislation, which currently allows both public and private PPAs, is promoting solar development through a solar rebate scheme. In early September, the Swedish government announced it will almost double the financial support for the program for this year from SEK 225 million ($28.2 million) to SEK 425 million ($53.2 million).
Eneo Solutions AB was founded in 2013. The company closed a $2.7 m round of financing in October 2015. At the time, investors were Gullspång Invest, a Swedish family-office venture capitalist investing in early-stage cleantech and technology companies, RAM Rational Asset Management, a hedge fund management company, and local entrepreneur Rikard Lindström. This group of investors was recently joined by Sweden-based investment company Infranode, which agreed to invest SEK 100 million ($11.3 million) in Eneo.